The Oyo state government has sealed off offices of the Ibadan Electricity Distribution Company after the IBEDC disconnected the state secretariat power supply for unpaid bills.
The IBEDC has condemned the government’s action describing it as an unfair show of power and arm-twisting tactics instead of paying the outstanding bill totaling $450 million owed to the disco.
On the contrary, the Oyo State government has said in a statement that its action to seal off some of the IBEDC offices was not a form of retaliation but was due to the IBEDC’s refusal to pay tax revenue to the tune of $400 million owed to the state over the past two years.
The Chief Operating Officer of the IBEDC, John Ayodele said that the company had made several failed attempts to get the government to settle its debt which is spread across a period of three years. In his statement addressing the situation, Ayodele said;
“The management of Ibadan Electricity Distribution Company (IBEDC) hereby informs its esteemed customers of the retaliatory and illegal action of Oyo State Government over the issue of its huge indebtedness.
“This issue of revenue bills and personal income arising now is quite suspicious. Oyo State Government is owing IBEDC a whopping consumption outstanding of N450 million for over a period of three years.”
“No business in this country can run successfully with such a huge outstanding. The power we distribute to customers must be accounted for and paid for. We have no choice but to disconnect the Oyo State secretariat. So, it is worrisome to see that the government has sealed off our offices with this underhand and arm-twisting tactics instead of paying the debt owed.”
“This was not done in good faith and it would have a damaging effect on the business and service delivery to our customers.”
Oyo State Responds To The IBEDC’s Claim
The Oyo state government issued a response to the IBEDC’s claims through a statement signed by the Commissioner for Information, Culture, and Tourism, Dr. Wasiu Olatubosun.
Without admitting whether or not the state was indeed owing a debt to the IBEDC, the Commissioner said that a high court order was obtained to seal IBEDC’s offices due to its refusal to pay bills issued by the board of internal revenue services.
“It is important for everyone to remember that it is the duty of all, individuals and businesses, to pay taxes and levies,” Olatubosum said. “Without these payments, the government cannot provide basic necessities and perform necessary functions. Therefore, IBEDC like any other business interest, should do the needful and meet its revenue obligations. This is the stand of the government and we seek the understanding of the people not to be misled by those who trade in falsehood.”
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The state IRS Chairman, Mr. Femi Awakan in another statement said that the state had applied for the warrant in order to enforce payment of its tax. “It is to be noted that the IBEDC has a statutory obligation to deduct and remit revenue bills to the government of Oyo State through the Board of Internal Revenue,” Awakan said.
“It is also to be noted that the distribution company failed to remit personal income tax of its employees within the period under review and that the Board of Internal Revenue several times served requisite demand notices calling attention to the company’s tax liabilities/obligations.”
The management of the IBEDC has called on the governor, Seyi Makinde to step into the situation in order to ease power challenges already being faced by residents and businesses across the state.
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